Universal Display Corporation

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's second quarter 2025 earnings conference call. My name is Sherry and I will be your conference moderator for today's call. At this time, all participants are in listen only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance, please push star zero on your telephone keypad. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Darice Luke, Senior Director of Investor Relations. Please proceed.

Thank you and good afternoon, everyone. Welcome to Universal Display's second quarter earnings conference call. Joining me on the call today are Steve Abramson, President and Chief Executive Officer, and Brian Millard, Chief Financial Officer and Treasurer. Before Steve begins, let me remind you that today's call is a property of Universal Display. Any redistribution, retransmission or reprodcast of any portion of this call in any form without the express written consent of Universal Display is strictly prohibited. Further, this call is being webcast live and will be made available for a period of time on Universal Display's website. This call contains time sensitive information that is accurate only as of the date of the live webcast of this call, July 31st, 2025. During this call, we may make forward-looking statements based on current expectations. These statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. These risks and uncertainties are discussed in the company's periodic reports filed with the SEC and should be referenced by anyone considering making any investments in the company's securities. Universal Display disclaims any obligation to update any of these statements. Now, I would like to turn the call over to Steve Abramson.

Thanks, Darius, and welcome to everyone on today's call. We are pleased to deliver record performance in the second quarter with revenue of $172 million and net income of $67 million or $1.41 per diluted share. As we look to the full year, we are raising the low end of our 2025 revenue guidance range to $650 million to $700 million. The OLED market continues to demonstrate a robust long-term growth trajectory, fueled by expanding product ratios and increasing adoption across consumer electronics and automotive markets. While macro uncertainties may continue to persist, we believe that the OLED industry is entering a dynamic new phase of expansion, primarily fueled by growing OLED demand in tablets, laptops, and monitors, where OLEDs are estimated to be less than 5% of the world's current IT market. According to Omdia Market Research, OLED IT units are forecasted to more than double to 48.6 million units in 2027 from 23 million units in 2024. Smartphones and TVs are also projected to maintain their upward trajectory, with anticipated growth rates of 11% and 10% respectively over the same period. Beginning next year, the first Gen 8.6 OLED THABs from Samsung Display and BOE are expected to come online, marking a pivotal shift in medium-sized OLED manufacturing capacity and capability. In addition, it was recently reported that VisionOx's Gen 8.6 OLED THAB and HEFE, designed with a production capacity of 32,000 plates per month, is progressing ahead of schedule. LG Display approved almost $1 billion to boost its OLED technology capabilities and capacity at its Pajio Korea plant and Vietnam module facility. TCL China Star is evaluating plans for a new Gen 8.6 OLED plant. Another driver of medium-sized OLED demand is automotive displays, which were a highlighted SID display week in May. On the trade show floor in San Jose, concept vehicles showcased a vision for the future of in-vehicle display technology, featuring innovations such as transparent sunroof and window display panels, slidable rear seat monitors, and expansive -to-pillar dashboards. Panelmakers offered a glimpse of how OLEDs are poised to redefine the on-road experience through design, functionality, and immersive visual performance. According to AMDIA, OLED adoption in the automotive sector continues to expand, particularly among luxury brands and new energy vehicles. The market research firm projects that automotive OLED display shipments will grow by more than 300 percent, from 2.8 million units in 2024 to 9.1 million units in 2029. OLED technology continues to reshape design possibilities for consumer electronics. Also at display week, panelmakers showcased an array of foldable, rollable, stretchable, and even polygonal displays. These innovations highlight the flexibility of OLEDs and its ability to enhance how users engage with devices across various categories. UBI research reports that with more OEMs anticipating to enter the foldable device market and existing brands planning to expand their foldable product lines, foldable shipments are expected to more than double by 2029 compared to last year. On the R&D front, our decades of deep expertise and proprietary knowledge continue to fuel bold ideas and scalable solutions. From early-stage research to commercial volume production, we're advancing the frontier of phosphorescent OLED materials and technologies. Central to this effort is our proprietary AI ML platform, which strengthens our discovery and development process. Established more than a decade ago, our internal computational team models molecular interactions at the atomic level, accelerating lead optimization and enhancing development pathways. This enables us to efficiently broaden our portfolio of next-generation reds, greens, yellows, blues, and hosts to meet the evolving needs of our customers and the broader display in consumer electronics market. Our -to-end innovation expands our leadership position and delivers technologies that support the OLED industry's growth trajectory. Regarding blue, as we noted in our May earnings call, the verification of commercialization level performance of blue phosphorescent OLED panels on a mass production line by one of our customers, marked a major milestone in our development journey. While the specific timing for the debut of our full-ed blue in commercial products will be guided by the OLED market, this achievement represents a critical step forward in our road map and underscores the significant progress we've made. We believe our phosphorescent blue is a game changer, not only for our customers in the broader OLED industry, but also for consumers and for us as a company. As we look across the broader market, consumer devices are becoming increasingly intelligent and interconnected, driven by AI, 5G, and always-on connectivity. This evolution is fueling unprecedented demand for energy-efficient technologies. Our universal full-ed materials are at the heart of this transformation. Our broadening portfolio of power-saving OLED materials and technologies helps extend battery life, reduce thermal load, and enable next-generation features in smartphones, wearables, IT devices, automotive displays, and more. And with our phosphorescent blue, we're poised to unlock up to an additional 25% improvement in OLED display energy efficiency, ushering in a new era of sustainable performance. On that note, let me turn the call over to Brian.